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Hello sir,
On 1st September 2008,A co had inventory of $380000.During the month sales totalled $650000 and purchases $480000.On 30th Sept 2008 a fire destroyed some of the inventory.The undamaged goods were valued at $220000.The business operates with a standard gross profit margin of 30%.
What is the cost of the inv destroyed in the fire?
Ans is $185000.
How do we get 455000?
You must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
(Have you watched my free lectures on mark-ups and margins, because I work through a very similar example in my lectures. The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.)
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